Chapter 155 Chip Industry
Liu Zhicheng came to the Texas Instruments factory, and after exchanging business ideas with Matthew, everyone began to visit the factory.

At this moment, they were all wearing dust-proof suits and were in the chip production workshop.

"Mr. Huo, how about this production line?" Liu Zhicheng said to his fellow visitor who was wearing a white dust-proof suit and only his two eyes could be seen.

For this procurement work, Liu Zhicheng sent his chief scientific and technological talent Huo Haiqing.

Now everyone is wearing white dust-proof suits. If it weren’t for the name on each person’s clothes, it would be impossible to tell who is who.

“I don’t really understand the chip manufacturing process, but I can see that it’s pretty professional here.
I will randomly pick out some chips to test the yield rate later." Huo Haiqing said in a white dustproof suit.

"Okay, let's go." Liu Zhicheng said after looking at the workshop.

He really didn't understand the equipment in this workshop, so these things could only be left to the team brought by Huo Haiqing to check.

They just had a conversation with engineers from Texas Instruments.

It seems to be feeling pretty good, but I still have to wait for Huo Haiqing's report to know the details.

Fortunately, Orange Technology had previously established a chip research center in North America, otherwise, with the strength of the Hong Kong research center, it would definitely be difficult to tell the good from the bad.

It’s not that Liu Zhicheng looked down on them, but they had never had any contact with them before, so how could they believe them?

At the end of the chip production line, there is a conveyor belt with a large number of chips on it.
They were picked up one by one by employees wearing gloves and placed in fixed plastic boxes.

In the 70s, induction technology, motor technology and PLC control technology were not yet developed enough, and the end-point collection of chips could not be automated and had to rely on manual labor.

Huo Haiqing led everyone here, took away a few chips, and began to test the chip performance using the equipment brought by his North American colleagues.

Everyone was looking at the computer screen. At that time, computers were still controlled by code and did not have the window operating interface of later generations.

Liu Zhicheng also only saw an employee of the North American R&D center constantly entering various codes, none of which he recognized.

There were a few people gathered around the computer, staring at the interface intently, and occasionally communicating with each other.

After a long while, Huo Haiqing turned around and said to Liu Zhicheng:
"Not bad, but the number of tests is still too small. We need to conduct large-scale tests to know the specific results."

"No problem, you can take this box of chips out for testing. There are a total of 100 chips.

But you have to follow the operating procedures to test and prevent static electricity from breaking down the chip circuits."

Matthew from Texas Instruments, who accompanied Liu Zhicheng on his visit to the workshop, said.

When testing chips, attention must be paid to electrostatic protection and the test must be carried out in a dust-free environment.

Otherwise, static electricity may easily break down the circuits in the chip.

"Okay, then I'll take this box away." Huo Haiqing said bluntly.

"I will pay a separate amount for these chips," Liu Zhicheng also said.

Matthew smiled and said, "Mr. Liu, this is an ordinary chip, and each chip is worth only a few dollars.

I hope you can confirm the chip quality as soon as possible so that we can finalize our transaction as soon as possible."

Compared to a transaction worth millions of dollars, the value of this chip is just a drop in the bucket.

If the transaction can be finalized early, the millions of dollars in interest can be earned back in just a few days.

Moreover, when he said that the chip was only a few US dollars per piece, he was referring to the terminal selling price; the actual production cost would only be lower.

"Okay, let's go out then." Liu Zhicheng said.

Several people walked out again according to the procedure. The moment Liu Zhicheng took off his dust-free suit, he felt that his breathing became much easier.

"Liu, you are not used to wearing this kind of clothes. In fact, it will be the same once you get used to it." Matthew seemed to see what Liu Zhicheng was thinking and said with a smile.

"Then I may never get used to it." Liu Zhicheng shook his head and smiled.

As the boss of the company, I would occasionally visit the factory in the early stages of the business, but this was the first time I put on a dust-free suit.

Now that the company has grown, there are basically no opportunities to go to the factory workshop.

After all, it was not the first time the business was started. There were so many factory managers, what was he going to do?

At most, I would spend a few days a year to take a quick look, but my main job was still to manage data in the company.

"That's right." Matthew nodded, as if he understood what Liu Zhicheng meant.

Afterwards, several people returned to the meeting room in the factory office building.

"Liu, I know you are very busy too, so I will just say it directly, let the engineers discuss the technology, and we will discuss the price, how about it?" Matthew said with a smile.

Hearing Matthew's direct response, Liu Zhicheng stopped beating around the bush and nodded.

"Yes, according to the price I know, the purchase price of a 3-inch wafer production line is only 300 million US dollars.

Considering the terminal installation, personnel training, business restrictions, etc., I can offer 400 million US dollars, how about it? "Liu Zhicheng said.

"Mr. Liu, what you said is also the actual situation, but this price is really too low. For this export,

Texas Instruments used a lot of connections to resolve the restrictions imposed by the Ministry of Commerce, and this was definitely not a matter of money," said Matthew.

"Any problem is a matter of money, and the U.S. Department of Commerce has not strictly prohibited the export of chip equipment.
It just requires reporting and obtaining permission, and there is a lot of room for maneuver." Liu Zhicheng added.

"There is indeed a lot of room for maneuver, but it also requires a lot of human resources. Our offer is US$520 million.

We can guarantee the delivery of the equipment to Hong Kong, as well as installation and subsequent production guidance for half a year." said Matthew.

This price is indeed not high. For equipment such as chip production lines, sometimes the price has to be set according to the current environment.

Just like before Liu Zhicheng traveled through time, under normal circumstances, even if you have the most money, you may not be able to buy it. In this case, the price is sky-high.

"Mr. Matthew, how about we discuss the price after my people have determined the capabilities of this production line?" Liu Zhicheng said with a smile.

At this point, if we keep discussing the export issue, we will get into a dead end and have to stop immediately, otherwise it will be meaningless.

If the chips produced by the equipment have a high yield rate after testing, it doesn't matter if the price increases by tens or hundreds of thousands of dollars.

"Okay." Matthew nodded. He also knew that a deal involving millions of US dollars could not be concluded in just a few days.

…………

The legal team hired by Liu Zhicheng to participate in the price negotiations with Boeing reported that Boeing has agreed to reduce the price to US$7980 million.

Liu Zhicheng was quite satisfied with the price and gladly accepted it.

Boeing also sent a commercial team, and the lawyers from both sides argued for a long time before finally finalizing the contract.

Liu Zhicheng and Boeing’s representative signed their names on the contract, indicating that the transaction was officially concluded and only delivery was pending.

"Congratulations, Mr. Liu, you now own the world's most luxurious palace in the sky." Tom smiled and shook hands. After signing, Tom was very happy. Not only could he get a commission of hundreds of thousands of dollars for this order, but Boeing also perfectly opened up the super-rich market.

Liu Zhicheng smiled and said, "Thank you, Mr. Tom."

"Mr. Liu, I wonder if you have found suitable pilots and flight attendants. Boeing is very willing to provide customers with excellent driving teams." Tom said with a smile.

Liu Zhicheng asked: "Does Boeing also have a large reserve of pilots?"

"Of course, each of our aircraft will undergo a lot of flight tests after it is manufactured, which also requires a large number of pilots," Tom said with a smile.

Boeing has partnerships with several pilot training institutions, which is one of their means of promoting Boeing aircraft.

It also cooperates with the United States K Army, and many outstanding pilots choose to join Boeing after retirement.

After all, the treatment at an airline company may be better, but it is nowhere near the stability and comfort of being a test pilot at Boeing.

So Boeing is not bragging, they can provide pilots no matter what type of aircraft you have.

Being a private jet pilot obviously has an easier life and earns more. Of course, it is a good job, so naturally many pilots want to get such an opportunity.

For Boeing, recommending pilots to customers is also a paid service. For those who can buy a private jet, who would care about the referral fee?

Liu Zhicheng thought for a moment, then smiled and declined, "I can take care of the pilot and the flight attendant myself."

First of all, he has decided to poach some pilots from Cathay Pacific Airways in Hong Kong. These pilots are mainly Chinese and are more trustworthy.

Cathay Pacific owns dozens of Boeing 747s, so there is naturally no shortage of excellent Chinese pilots in Hong Kong.

As for the flight attendants, it is even simpler. Liu Zhicheng has been struggling with whether to hold an open selection.
"Okay, my company will hold a dinner at the hotel to celebrate the signing of our contract. I wonder if Mr. Liu can come tonight." Tom asked.

"Okay, no problem." Liu Zhicheng nodded and agreed.

Although this is a promotional activity of Boeing, it is also a high-end business activity.

...............

After attending the Boeing dinner, Liu Zhicheng began flying around the United States from the next day, visiting second-hand chip equipment everywhere.

Now, due to the fierce competition among RB chip companies, it is the cold winter season for chips in the United States.

There are companies everywhere selling second-hand low-end chip production lines.

Moreover, Liu Zhicheng is welcomed by many chip companies.

These companies were looking to dispose of second-hand low-end equipment, and someone sent them pillows, which of course were welcomed.

Matthew from Texas Instruments naturally also knew about this, so he came to New York in person and sat down to talk with Liu Zhicheng for a long time.

Eventually, the production line they had watched was exported to Hong Kong for US$480 million.

…………

Time soon arrived and it was May 5th, with clear weather.

This day is the day when Apple Computer goes public, and Liu Zhicheng will go to Nasdaq to attend the listing ceremony as an investor.

At present, the scale of Nasdaq is far smaller than that of Dow Jones, but Nasdaq is basically where new technology companies are listed.

In this way, investors around the world who are interested in new technology companies can easily find suitable investment targets here.

Apple computers were launched today and the square outside the building was bustling with activity.

A celebratory arch was built and colorful flags with the Apple Computer logo were hung so that passers-by could see it from a distance.

In order to attract Chinese investors, Jobs invited a professional lion dance team from Chinatown, who were performing a lively show.

When Liu Zhicheng arrived, he saw that a dense crowd of shareholders, representatives of investment institutions, and reporters from all sides had already surrounded the main entrance.

However, as investment representatives of listed companies that send money to Nasdaq, they naturally have their own separate channel.

Jobs, Wozniak, Liu Zhicheng and representatives from the two investment banks entered the lounge arranged by the trading center through the VIP channel.

"Look at the crowd outside. Apple's IPO today is bound to be a huge success," Liu Zhicheng said with a smile.

The two walked to the window sill together. Jobs looked at the densely packed crowd and said confidently:
"Of course, the previous roadshow has been sought after by investors. The people you see are actually only a small part of it. There are many more people who will buy our stocks through phone calls."

"After going public and obtaining so much funding, what are your plans for the next step?" Liu Zhicheng asked.

"Of course, we should develop more advanced personal computers. Only in this way can we stand out from the competition with IBM, HP, Texas Instruments and other strong companies.

Only better products can ensure Apple's position in the personal computer market." Jobs replied.

"That's right." Liu Zhicheng nodded and smiled, then asked, "What is your internal estimate of the market value of Apple's IPO this time?"

If Orange Technology does not participate in the personal computer market, Liu Zhicheng would not mind helping Apple in some aspects.

But now, Orange Technology is ready to develop civilian computers, so Apple should just let nature take its course.

Jobs did have a keen eye for the market, and in the next few years he would spend an inordinate amount of money intent on building the perfect personal computer in his mind.

Jobs' demands became higher and higher, but he forgot one thing: market demand and tolerance.

The result was that this perfectly good personal computer was too expensive and there was no market for it.

Then Apple suffered huge losses, and then Jobs was kicked out by capital.

"Goldman Sachs investors believe that our market value after going public could exceed $10 billion," said Jobs.

"Then you and Wozniak will become billionaires, but I think the market value will be higher." Liu Zhicheng said with a smile.

"Higher?" Wozniacki, who had been silent, said in surprise, "Isn't that higher than Intel?"

"Indeed, Intel is great, but most people don't know him. In the stock market, it's not possible without fame," Liu Zhicheng said with a smile.

"That's right." Jobs understood this point and nodded.

"Jobs, my Jingxi electrical appliance chain supermarket wants to be the agent for the sales of Apple computers. What do you think?" Liu Zhicheng asked.

"Mr. Liu, this is a good idea. I can't disagree." Jobs nodded in agreement.

"Gentlemen, it's almost time." An exchange staff member came over.

"Liu, let's go and ring the bell together." Jobs said to Liu Zhicheng with a smile.

Liu Zhicheng shook his head and declined, saying, "This is your moment of glory. I don't need to share it."

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(End of this chapter)